Inflation Drives Big Wage Increases for Provincial Employees

BUENOS AIRES—Argentina's federal government has refinanced the debts it is owed by 18 provinces, as governors struggle to plug budget deficits aggravated by double-digit inflation.

The federal government reprogrammed 75 billion pesos ($11.5 billion) in principal and interest payments due in 2014 for a net savings to the provinces of around 11 billion pesos, President Cristina Kirchner's cabinet chief, Jorge Capitanich, said in a...